Regulation on the Implementation of the Law of the People's Republic of China on Tobacco Monopoly (2023 Revision)

Regulation on the Implementation of the Law of the People's Republic of China on Tobacco Monopoly (2023 Revision)

(Issued by Order No. 223 of the State Council of the People's Republic of China on July 3, 1997, revised for the first time according to the Decision of the State Council on Repealing and Amending Some Administrative Regulations issued on July 18, 2013, revised for the second time according to the Decision of the State Council on Amending Some Administrative Regulations issued on February 6, 2016, revised for the third time by the Decision of the State Council on Amending the Regulation on the Implementation of the Law of the People's Republic of China on Tobacco Monopoly issued on November 10, 2021; and revised for the forth time by the Decision of the State Council to Amend and Repeal Certain Administrative Regulations issued on July 20,2023)

Chapter I General Provisions

Article 1 The detailed rules have been formulated pursuant to the Law of the People's Republic of China on Tobacco Monopoly (hereinafter referred to as the "Tobacco Monopoly Law").

Article 2 Tobacco monopoly refer to monopoly of the State of the administration of production, marketing and import and export of monopoly tobacco products.

Article 3 Monopoly cut tobacco refers to tobacco filaments, dust and granules processed with tobacco leaves, re-cured tobacco leaves and tobacco sheets as raw materials.

Article 4 Institution of functions and administrative system of departments in charge of tobacco monopoly of the State Council and various provinces, autonomous regions and municipalities shall be done in accordance with the provisions of Article 4 of the Tobacco Monopoly Law. For cities and counties which do not have administrative departments in charge of tobacco monopoly, the departments of the cities and counties in charge of tobacco monopoly shall take charge of such rules under dual leadership of the tobacco monopoly administrative departments in charge at the next higher level and the people's governments at the same level, with the tobacco monopoly administrative departments in charge at the next higher level to assume the main leadership.

Article 5 The State shall control over the tar contents of cigarettes and cigars and major additives to cigarettes and cigars. Tobacco products manufacturers should not use harmful additives and colorants in violation of the related provisions by the State.

Chapter II Tobacco Monopoly Licenses

Article 6 Application for tobacco monopoly licenses shall be required according to the provisions of the Tobacco Monopoly Law and the provisions of this set of rules for producing and handling wholesale and retail sale of tobacco products subject to monopoly and for handling imports and exports of such products and for handling purchase and marketing of foreign tobacco products.

Tobacco monopoly licenses are divided into:

(1) Tobacco Monopoly Production Enterprise License;

(2) Tobacco Monopoly Wholesale Enterprise License;

(3) Tobacco Monopoly Retail Sale Enterprise License;

Article 7 The following requirements shall be met in obtaining Tobacco Monopoly Production Enterprise Licenses:

(1) To have adequate amount of funds for producing the monopoly tobacco products;

(2) To have the technology and equipment for producing the monopoly tobacco products;

(3) To adapt to the requirements of the State industrial policies for the tobacco industry; and

(4) To conform to other requirements as provided for by the State Council department in charge of tobacco monopoly.

Article 8 The following requirements shall be met in obtaining Tobacco Monopoly Wholesale Enterprise Licenses:

(1) To have adequate funds for wholesale of monopoly tobacco products;

(2) To have adequate operational site and personnel;

(3) To conform to the requirements of the distribution of monopoly tobacco wholesale enterprises; and

(4) To conform to other requirements as provided for by the State Council department in charge of tobacco monopoly.

Article 9 The following requirements shall be met in obtaining Tobacco Monopoly Retail Enterprise Licenses:

(1) To have adequate funds for retail of monopoly tobacco products;

(2) To have the fixed site for business operations;

(3) To conform to the requirements of the distribution of monopoly tobacco retail enterprises; and

(4) To conform to other requirements as provided for by the State Council department in charge of tobacco monopoly.

Article 10 Administrative department in charge of tobacco monopoly under the State Council shall be responsible for issuance of licenses and administration of monopoly of tobacco products and transport of such products according to the Tobacco Monopoly Law and the provisions of this set of regulations.

Article 11 In applying for a license for the production of tobacco products for monopoly, an application should first of all be filed with the administrative departments in charge of tobacco monopoly of the province, autonomous region or municipality (hereinafter referred to as provincial level), for an examination comments and submitted to the administrative department in charge of tobacco monopoly under the State Council for approval and issuance of the license.

Article 12 In applying for licenses for wholesale of tobacco patent products for trans provincial, autonomous regional or municipal operations, an application should be first of all filed with the provincial level administrative departments in charge of tobacco monopoly for examination and comments and then submitted to the administrative department under the State Council in charge of tobacco monopoly for approval and issuance of the license.

In applying for a license for wholesale of tobacco monopoly products within a province, autonomous region or municipality, an application should first of all be filed with the administrative departments in charge of tobacco monopoly in its domicile for examination comments and then submitted to the provincial level administrative departments in charge of tobacco monopoly for approval and issuance of the license.

Article 13 In applying for a license for patent retail sales of tobacco products, the provisions of the Tobacco Monopoly Law shall apply.

Article 14 Organs responsible for issuance of tobacco monopoly licenses should, regularly or irregularly check enterprises or individuals that have obtained such licenses. If any case is found to have failed to meet the requirements of the Tobacco Monopoly Law and this set of regulations, the organs that issued the license shall order a temporary stop of the monopoly for carrying out a rectification until all the requirements are met.

The specific procedures for control of tobacco monopoly licenses shall be worked out by the administrative department in charge of tobacco monopoly under the State Council according to the provisions of this set of regulations.

Chapter III Plantation, Purchase and Appropriation of Tobacco Leaves

Article 15 Administrative department in charge of tobacco monopoly under the State Council shall, together with people's governments of related provinces, autonomous regions and municipalities, map out plans for tobacco plantation according to the requirements of rational distribution and the State plans under the principle of improved strains, regionalization and standardization.

Article 16 Tobacco leaves should be purchased in a unified way by tobacco companies or their entrusted units. Tobacco companies or their entrusted units may, according to needs, open tobacco purchasing stations (points) to purchase tobacco in areas that have received plans for purchasing tobacco issued by the State. The opening of such purchasing stations (points) should get the approval of districted city level administrative departments in charge of tobacco monopoly. Without approval, no unit or individual is allowed to purchase tobacco leaves.

Article 17 Groups for grading of tobacco leaves should be erected by local administrative departments in charge of tobacco monopoly, together with related departments at the same level and tobacco producers to coordinate appraisals of grades of tobacco leaves for purchase.

Article 18 Plans for State reserves, exports and appropriation of tobacco leaves shall be issued by the planning department of the State Council.

Chapter IV Production of Tobacco Products

Article 19 Startups of tobacco product producers shall be applied by the provincial level tobacco monopoly administrative departments to the State Council administrative department in charge of tobacco monopoly for approval and issuance of licenses and to the administrations for industry and commerce for registration as tobacco monopoly production enterprises.

Article 20 Producers of tobacco products should strictly operate according to the production plan issued by the State.

Article 21 It is forbidden to use rotten tobacco leaves to make cigarettes, cigars or cut tobacco.

Article 22 Registrations of trademarks should be undertaken for cigarettes, cigars and packed cut tobacco.

Chapter V Sales of Tobacco Products

Article 23 Enterprises that have obtained licenses for patent wholesale of tobacco products should operate within the scope an......